Catherine Beard: Business NZ Advocacy Manager on the tariffs on US trade

New Zealand isn't likely to get a better deal than we're currently getting, when it comes to trade with the US. 

Almost all goods to the US now face a 10% base tariff rate. 

Donald Trump's announced a 25% tariff rate for Japan and South Korea from the start of next month and may also raise tariffs on other trading partners. 

Business NZ Advocacy Manager Catherine Beard told Heather du Plessis-Allan New Zealand probably can't negotiate a tariff rate below the 10% rate we're facing. 

She says if that's the best rate going, it's probably not worth New Zealand trying to get into a "David and Goliath" battle with the US. 

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Episode Transcript

Speaker 1 (00:00):
Now a bit of confusion over when Trump's tariffs are
going to kick in. The ninety day Pauls was supposed
to end tomorrow. It now looks like it's going to
be August. One good thing is the man in charge
is clearing it all up for us and for presidents.

Speaker 2 (00:09):
Do the tariff freeds change at all on July ninth
or do they change on August Firth?

Speaker 1 (00:15):
What are you talking about? Tariff fred Do they change
on July ninth or August Firth?

Speaker 2 (00:19):
No, They're going to be tariffs, and tariffs are going
to be the tariffs. I think we'll have most countries
done by July night.

Speaker 1 (00:26):
Yeah, yeah, well, good thing. The tariffs are going to
be the tariffs. Catherine Beard is the advocacy director for
Business New Zealand with US Morning.

Speaker 2 (00:32):
Catherine, Good morning.

Speaker 1 (00:34):
So does it look to you like what's going to
happen is the letters go out this week and then
the tariff's kick in on the first of August.

Speaker 2 (00:41):
Well, it all sounds a bit confusing, doesn't it. So,
so the countries that he's trying to do deals with,
and I think i've seen Japan and South Korea mentioned,
you know, those will be kind of two way negotiations
and they'll be finished, I guess when they're finished, and
sometimes you know, those can be protracted, particularly if both

(01:02):
sides keep going for another round. In New Zealand situation,
I think we're just on a flat ten percent tariff,
which is sort of the default, and it's the lowest level,
so that's probably going to be less complicated and that
will arrive when it arrives. I think people were planning
for tomorrow, but who knows. It's one of those regimes,

(01:25):
isn't it where you wake up every morning and see
what the latest is.

Speaker 1 (01:28):
Where are we at? We Are we just taking are
we accepting the ten percent tariff? Or are we fighting it?

Speaker 2 (01:34):
Look, I don't think there's any point in fighting it
because it is the lowest rate. So the main thing
for us is to have a level playing field and
if that's the best rate going, then a little I
would say, pit's quick country like New Zealand trying to
get into negotiation with the big country at the United States.

(01:56):
It's probably a David and Goliath restal and it's probably
not worth it.

Speaker 1 (02:01):
And we probably do not feature very high on the
list of priority countries for striking a deal.

Speaker 2 (02:05):
Right, No, that's right. And look, if you get the
ten percent, you're considered to be a good trade partner
as basically you know the narrative.

Speaker 1 (02:14):
Catherine. By the way, what do you make of the
government looking at the bank's tax.

Speaker 2 (02:19):
Yeah, look, I've just been reading about that in the
media like everyone else, and yeah, but amusing because I
was also reading I might have been in the Herald
this week who the biggest corporate tax payers were, the
top ten and the banks were all in there. So
they're paying a lot of tax already.

Speaker 1 (02:36):
Yeah too, right, Catherine, Thank you very much, appreciate it.
Catherine be Advocacy director for Business New Zealand. For more
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